Crowell Dispute with Pan Am Flight 73 Hijack Victims Heats Up

A multimillion-dollar dispute between Crowell & Moring and a group of victims of the 1986 Pan Am Flight 73 hijacking is intensifying with the victims seeking support from Congress and the State Department and their opponents moving to compel arbitration.

Two victims sued Crowell and its Flight 73 Liaison Group in January because of the law firm’s demand that they share any awards made pursuant to a treaty between the United States and Libya with fellow plaintiffs in their 2006 lawsuit against Libya. The number suing has grown to 10, according to an amended complaint filed on Monday in the federal district court in California.

At the center of the suit is the legitimacy and effect of a retainer agreement and a joint prosecution agreement following the 2008 U.S.-Libya treaty settling terrorism-related legal claims of U.S. citizens for $1.5 billion.

Crowell’s demand is based on provisions in the agreements stating that any recovery in its lawsuit against Libya would be shared on a sliding scale based on the type of injury and without regard to nationality, according to the complaint. A Pan Am Liaison Group was established, consisting of one American and four non-Americans, to deal with litigation counsel, and it was represented by New York's Latham & Watkins. The agreement also provided for a 25 percent contingency fee to Crowell. Crowell did file a lawsuit, but it did not result in a judgment and was dismissed after the treaty settlement.

If Crowell’s demand for the treaty awards is successful, two of the victims could lose approximately 90 percent of awards totaling from $4 million to $12 million, according to their attorney, Lee Boyd, an international law litigator from Newbury Park, Calif. The bulk of that money would go to noncitizens who comprise nearly 77 percent of Crowell's original 178 hijack clients.

Boyd, Gargi Dave—a name plaintiff in the lawsuit—and Prof. Roger Alford of Pepperdine University School of Law, who is serving as an expert consultant in the case, spent Wednesday meeting with members of the Department of State and the staffs of Democratic Sens. Frank Lautenberg of New Jersey and Dianne Feinstein and Barbara Boxer of California.

The statute enacted to implement the Libya-U.S. claims settlement immunizes from judicial process both Libya and the assets after they go to victims, noted Alford.

“Our goal would be to have State Department come in to defend its own interest in getting this money to the right victims, not to the lawyers and non-nationals,” said Boyd, adding that she also hopes Lautenberg and other members of Congress will file a statement in the lawsuit about Congress’ intent in enacting the claims statute.

In the meantime, Latham, on behalf of the Liaison Group, has filed a motion to compel arbitration in federal district court in Washington. Boyd has countered with a motion to transfer that issue to California where the original suit is pending before Judge Rolf Treu. A hearing on the motion to compel arbitration was held today before U.S. District Judge John Bates. For more on that hearing, click here.

In their lawsuit, Boyd’s clients attack the arbitration clause as “inapplicable” to this dispute and as “unconscionable.” Latham did not respond to a request for comment.

Comments

[Katy]

I have written a book about the terrible hijack on PanAm flight 73, (5th September 1986) called Dancing in the Sea. It was published a few years ago. I was very badly injured by a hand grenade but survived.
It would have been fair to give all those who were physically and emotionally injured, compensation out of the treaty settlement between the 2008 treaty between Libya and the U.S. but as usual justice is often not just. I have written to the involved lawyer - Stuart Newbergher, asking him for information regarding non-US citizens. I am awaiting a reply. I hope he will see fit to write.

My injuries, just for the record have been:
removal of right buttock, sciatic nerve squashed, no head or neck of femur left where the grenade blasted away the buttock, lattisimus dorsi muscle removed, colostomy and more than 20 operations with total anaesthetic in 6 hospitals around the world, plastic surgery and numerous other problems that have developed due to the grenade blast. I walk on crutches.
I have also been though psychotherapy to alleviate the shock. Life has not been very easy although I recognise myself as a fighter. If anyone has any news please write.

[JavaidM]

My dad, currently a U.S. citizen but not one at the time, was injured on this flight after about 36 feet jump off the airplane. His leg has been damaged and yet, he was not contacted by Crowell & Morning. Not only is he not part of this lawsuit, but he feels that the world does not even recognize the hardship that he, like the others in this flight, faced as a result of not being a part of this agreement.
My dad and I just barely discovered this case and because of his citizenship status at the time, he is not being considered for the settlement.
the tens of millions of dollars collected from Libya for victims of this incident should be divided equally between all the survivors, even if most of them are not American.
-a paraphrased quote from Stuart H. Newberger, lead consul at Crowell & Moring
Despite the quote above, my dad is being denied to be a part of this agreement by Crowell & Moring. Id like to see if some attorney can represent my dad and others who now finding out about all this.

[hassan syed]

my name is hassa syed i was on the flight i received severe bullet injuries commuted scapula fracture and grenade splinter in let arm and shoulder,I survived and only received 60,000 USD from my attorney in 1987 in NEW YORK MR STEVEN WIESSMAN.MY POSTAL ADDRESS IS HOUSE NO 25 A,LANE NO 5 A,LALAZAR COLONY,TULSA ROAD RAWALPINDI PAKISTAN MY PHONE NO IS 9251 5580736 CELL 03009772347 After 26 years of the tragedy iam still having one lung punctured,memory loss i am married a wife and three children to look after.Can i claim for compensation please

[Clarence Maloney]

For decades, all the media attention was to the Lockerbie PanAm case. Now at last we victims of the Karachi PanAm case are pleased that it is getting attention- 23 years after the event and after many of the victims have died or gotten lost, and now only because of an unfortunate legal dispute.